Union Bank says it has grossed N42.6 billion in earnings during the first quarter of the year which ended on March 31.
In its unaudited financial statements, it says Profit before tax (PBT) grew by 19 per cent to N6.2billion from N5.2billion same period in 2019. Gross earnings are also up by 18 per cent to N42.6billion from N36.1billion in Q1 2019.
Commenting on the results, Emeka Emuwa, CEO said: “Coming off a strong 2019, we maintained focus on executing our strategic priorities in Q1 2020, delivering double-digit growth across all our major income lines. Our platforms and channels continue to drive our performance as non-interest income increased by 18 per cent from N10.9billion in Q1 2019 to N12.9billion for the period with e-business fees contributing N2.1billion, a 71 per cent growth compared to Q1 2019.
“The current COVID-19 pandemic presents daunting challenges for the global economy and consequently Nigeria and our business. Our focus in the short term is on ensuring business continuity through our strong operational risk framework; ensuring the health and well-being of our employees by adopting stringent health and safety protocols at our operating branches and offices; and supporting our customers through the crisis.
“We have reinforced our digital platforms to continue delivering value and convenience to our customers while aligning our focus areas to where opportunities emerge during and post COVID-19. We will continue to support the government, private entities and our communities in the fight against COVID-19.”
Speaking on the Q1 2020 numbers, Chief Financial Officer, Joe Mbulu said:
“Headline numbers delivered 19 per cent growth in Profit Before Tax to N6.2bn compared to N5.2bn in Q1 2019. The 18 per cent YoY growth in Non-Interest Income was driven by stronger trading income of N5bn compared to N2.2bn in Q1 2019, e-business income of N2.1bn compared to N1.2bn in Q1 2019 and revaluation gains of N2.7bn compared to N0.1bn in the same period last year. Our operational efficiency also improved with Cost-Income Ratio declining YoY to 74.3 per cent from 76.9 per cent in Q1 2019 as our cost optimisation programme continues to yield results. We have also kept NPL ratios flat currently at 5.9 per cent compared to 5.8 per cent as at December 2019.